AI Conversation Critical for Dairy’s Future

I was first introduced to the possibilities of computer-generated data during high school in the 1980s. I later thought it was cutting edge to turn in my grad school homework on a 3 ½”, 1.44mb disc in the early 1990s. That felt like dizzying technological progress then. That’s nothing compared to now.

From easy-to-fake videos to massive energy sucking data centers on rural land, AI is changing everything from web searches to queries of massive databases to predicting your next purchase. AI technology has quickly permeated all aspects of our lives and is now learning more quickly than we know how to adapt.

Dairy farmers, cooperatives, and the broader industry can’t afford to sit on the sidelines. AI’s economic effects are simply too great, and its consequences too profound. Dairy economics are unforgiving, consumer expectations are accelerating, and labor — well, every producer knows that story. If we want a resilient, profitable dairy sector for the next generation, mastery and incorporation of AI isn’t optional. It’s essential.

Let’s start with the most basic reality: Margins in dairy remain tight, and volatility isn’t going anywhere. Feed costs spike, milk prices swing, and global markets move on a tweet or a weather event. Dairy farmers have always been among the most data‑savvy business owners in agriculture, but the sheer volume of information available today — from ration formulation and heat stress to milk yields and cattle health — has far outpaced what a human can digest alone.

That’s where AI earns its keep. We’re talking about tools that don’t just record data but interpret it, learn from it, and predict outcomes before a problem shows up in the bulk tank. It isn’t about replacing the producer’s judgment; it’s about equipping the farmer with massive amounts of data that can be used to calibrate a level of precision that can predict, and allow you to correct, a problem before it occurs.

Cow‑level precision aided by AI may be the biggest potential productivity leap dairy has seen since the rotary parlor. Cows respond to predictable routines, clean stalls, and precisely formulated rations. Modern sensors can track rumination, movement, temperature, and feed intake, building a behavioral fingerprint for every cow. AI systems can pick up early signs of ketosis, mastitis, lameness, or feed disruption days sooner than traditional observation. Now imagine using AI to integrate the weather forecast with a feed ration, optimizing nutrition before the sun comes up. (Actually, we’re already doing this.) That means healthier cows, lower feed costs and vet bills, and higher milk production. In a business where each additional pound of milk matters, such innovations aren’t a luxury — they’re a lifeline, and a competitive advantage for farmers who use AI effectively.

But perhaps the biggest long‑term value of AI in dairy isn’t inside the barn. Without question, the efficiencies AI creates in the dairy supply chain and logistics will be revolutionary and will certainly bring changes. But imagine a world that’s able to seamlessly connect producers to consumers in the marketplace, domestically and overseas. For instance, consumers, major dairy buyers and foreign trading partners increasingly want transparency: how the cow was treated, what it was fed, how the milk was produced, what a dairy’s environmental footprint looks like, etc.

This is the sort of information that seal deals, both with foreign buyers in an export market and with parents shopping at a grocery store. Dairy farmers with AI‑driven monitoring and recordkeeping can document sustainability and animal‑care metrics with a level of detail that wasn’t possible before — a potential advantage when selling to transparency-minded customers.

We already know that impressive performance on carbon intensity, water use, and soil health are competitive advantages. We’ll also soon be able to use AI to predict which investments will garner the best farm-level returns, if we have the right data sets.

None of this means AI is a silver bullet. Major questions and concerns remain on how this technology can be harnessed for the broadest benefit, where the energy to power it will come from, how thriving farms and AI data centers can best coexist, and what safeguards on data privacy and security are needed, with this last point being a serious and complex problem that requires viable, legally enforceable solutions. It’s also important to remember that, like everything else, AI isn’t always right — without human guidance, significant errors can occur, and in the end, the dairy farmer needs to stay in the driver’s seat.

But for dairy, the potential benefits are too great to shy away from the challenges, and we need the industry’s best minds focused on solutions, to get a sense of where AI is going and how dairy can benefit from that path.

That’s why next week, at NMPF’s Board of Directors meeting in Arlington, VA, we’re adding an AI workshop and presentations to our agenda. As the leading U.S. dairy-farmer organization, we want to use our power to convene the industry on a precompetitive basis to wrestle with the questions and challenges we all have in common, to seek common solutions that help all of us thrive, and work through the challenges widespread AI adoption are rapidly placing before us. We’re excited to see what our members come up with, and we’re looking forward to being a repository of knowledge of this critical, fast-changing topic.

The dairies that thrive in the next decade will be the ones that blend human intuition with the predictive power of AI.  We can treat AI as an outsider’s gadget, or as a threat with risks that don’t justify the rewards, or we can embrace it as the next evolution of the same ingenuity that has always defined American agriculture. At NMPF, we are firmly in the camp of AI embrace, knowing that there will be bumps on the road, kinks to work out, and challenging questions to answer along the way, because along with policy leadership, we also help our members seek innovative solutions that benefit the entire industry. Dairy has never been afraid of hard work or new tools. AI is simply the next one we will use to succeed.


Gregg Doud

President & CEO, NMPF

 

U.S. Dairy Cites New USITC Report in Call for Action on Canadian Dairy Trade Practices

The National Milk Producers Federation and the U.S. Dairy Export Council today reiterated their call for the U.S. Trade Representative to use the U.S.-Mexico-Canada Agreement (USMCA) joint review process to address Canada’s distortionary nonfat milk solids export practices. Their statement follows yesterday’s release of the U.S. International Trade Commission’s (USITC) Section 332 report, Nonfat Milk Solids: Competitive Conditions for the United States and Major Foreign Suppliers.

The report confirms what NMPF and USDEC have long documented: that Canadian milk production quotas that “aim to match domestic supply and demand for butterfat lead to a level of raw milk production that results in a domestic structural surplus of [nonfat milk solids] components.” The report goes on to note that the Canadian government-administered milk pricing system “unlinks its relatively high farmgate price of milk from the price that [nonfat milk solids] processors pay for milk components in Canada using regulated ‘price discrimination.’”

The Canadian structural surplus and pricing system outlined in the report served as a basis for NMPF and USDEC to work with the first Trump administration to secure commitments during the USMCA negotiations for Canada to limit its artificially low-priced skim milk powder and milk protein concentrate exports. The deal established an annual threshold over which these nonfat milk solids exports are subject to a surcharge to ensure U.S. producers are not being undercut in the U.S. or international markets.

While the report acknowledges that Canada has to date limited its exports of products formally classified as nonfat milk solids, it also cites a marked increase in Canadian exports of products categorized under tariff codes for “blended dairy products” and “protein isolates,” that fall outside of the USMCA-disciplined tariff categorization. The report estimates that from 2013 to 2015 exports under the “protein isolate” tariff code were just 76 metric tons. Post USMCA implementation, the volume of protein isolates has grown dramatically to over 32,000 metric tons from 2022 to 2024. While the tariff code is not exclusive to dairy proteins, USITC estimates that most of the exports were dairy based.

USITC notes that the dairy products are entering the United States from new and expanded processing plants in British Columbia and Manitoba. The report cites that “[i]n addition to access to cost-competitive sources of [nonfat milk solids] components, these facilities received grants and loans from national and provincial governments.”

In testimony before the USITC as part of the investigation in July 2025, NMPF and USDEC’s Jaime Castaneda and William Loux called out the detrimental effects of Canada’s cumulative pricing and trade practices on U.S. dairy farmers and processors. Castaneda said, “it is absurd that Canadian dairy producers receive one of the highest farmgate milk prices in the world by a wide margin, yet their nonfat milk solids end up on the global market at prices below our cost of production.” Loux added, “Canada’s actions distort markets and undermine fair competition … This information is critical to bring substantive results for U.S. dairy producers and processors, including during the upcoming USMCA review process.”

The testimony complemented comprehensive comments submitted by NMPF and USDEC as part of the investigation and coordination among members to demonstrate the breadth of the issue. The organizations will continue to work with USTR to leverage the report and ensure Canadian attempts to circumvent their dairy protein export commitments are comprehensively addressed in the ongoing USMCA joint review process.

Milk Variety Makes Healthy Kids

The greater the variety of milk in schools, including whole, lower-fat and flavored varieties, the greater the benefits to students, dairy farmers are telling lawmakers as they meet them on Capitol Hill.

“I think it’s awesome that students and kids have a choice. Giving them more choices just gets more milk out there for them, and the benefits that it has, and the flavor that it has that kids enjoy,” said Lauren Schwartzbeck, a schoolteacher and dairy farmer who farms near Union Bridge, MD, and a member of Maola Local Dairies, in the latest episode of the Dairy Defined podcast, released today. “I think by giving them those choices and by providing that product to them, that can only do great things, not only just for our dairy industry, but for these kids as well.”

Schwartzbeck was joined by Prairie Farms Chairman and NMPF Executive Committee Member Frank Doll, whose dairy is near Greenville, IL, on the podcast. The two farmers discuss the benefits of adding whole milk to school meal menus as well as the value of flavored milks, which are a popular source of student nutrition. Doll also talks about some of dairy’s priorities as farmers descend on Washington next month for its annual fly-in.

To hear more Dairy Defined podcasts, you can find and subscribe to the podcast on Apple Podcasts, Spotify and Amazon Music under the podcast name “Dairy Defined.”


NMPF Statement on the Retirement of Michael Dykes

From NMPF President & CEO Gregg Doud: 

“Michael Dykes has been an absolute workhorse for American agriculture. Dating from his childhood on a dairy farm through his decade of leadership at the International Dairy Foods Association, Michael’s accomplishments on behalf of the farmers of this country is a very long list. It has been an absolute honor to work with him on many issues over many years, and his dedication to the industry he serves has always been inspiring. Dairy farmers thank him for his leadership and wisdom, and we wish him the best in his next chapter.”

NMPF and USDEC Statement on House Passing the Combatting Organized Retail Crime Act

The National Milk Producers Federation and the U.S. Dairy Export Council issued the following statement on the House passing the Combatting Organized Retail Crime Act (CORCA):

“CORCA is an important tool for our dairy producers to ensure that their products reach end customers safely and on time,” NMPF President & CEO Gregg Doud said. “We appreciate Reps. Joyce, Lee, Valadao and Titus for leading this commonsense legislation to crack down on cargo break-ins that continue to affect U.S. dairy shippers. We look forward to working to move the bill forward in the Senate and into law.”

“U.S. dairy exporters rely upon a supply chain that is safe and reliable in order to reach customers around the world,” USDEC President & CEO Krysta Harden said. “Unfortunately, our dairy exports have been collateral damage as criminals break into shipping containers in search of high-value retail goods. The bipartisan legislation passed by the House is a critical step toward providing our dairy shippers and law enforcement the resources needed to better confront this issue. Thank you to Representatives Joyce, Lee, Valadao and Titus for championing this important effort.”

The Kids are All Right — They Trust Dairy

Consumers continue to maintain high levels of trust in dairy and its industry, according to the latest Consumer Perceptions Tracker from Dairy Management Inc. The tracker, now in its third year, shows the percentage of consumers giving dairy its top two trust ratings (on a seven-point scale) rose to 36% in 2025, one tick up from the previous year.

That’s gratifying, but perhaps not that surprising. But want to see what’s driving it? Look at the overall percentage breakdown by age. Then, look at the teenagers:

The cohort that has the most trust in dairy is… teenagers, with 47% rating dairy a 6 or a 7 on the 7-point scale. While it’s true that “6-7” was a viral craze among the young folk in 2025 (which now is soooooo last year), the evolution toward greater trust among the young folk — those “hepcat whippersnappers,” those “totally rad hipsters” — probably goes deeper than that. Note the three-year trend:

From 33% in 2023, to 41% in 2024 to 47% in 2025. That’s a real move. And it shows a bright future for dairy.

Maybe it’s the cottage cheese craze. Maybe it’s the decline of the plant-based beverages that hoodwinked millennials. Maybe it’s the renaissance of whole milk. Maybe it’s good old-fashioned persuasion, brought to teenagers via their own media channels and supported by dairy farmers and their allies.

For whatever reasons, support for dairy no longer is something that is strongest among the elderly — teenagers have positively Boomer-level (actually, better) respect for what dairy farmers do. That’s where an industry wants to be. That’s where dairy is. To borrow from the pop culture of the Boomers the teens have surpassed, the Kids are Alright — true in 1966, true in 2026.

And the choice of a new generation.

USDA Clears Path for Whole Milk in Schools

The National Milk Producers Federation today applauded USDA’s Final Rule, “Expanding Fluid Milk Options in Child Nutrition Programs,” which includes whole and 2% milk as options in the school breakfast, Special Milk and Child and Adult Care Food programs.

The rule is an important step in implementing the Whole Milk for Healthy Kids Act of 2025 that was signed into law in January.

As the rule was developed, NMPF requested clarification from USDA that schools would have the option to provide whole and 2% milk for school breakfasts as well as school lunches; today’s rule meets that need and benefits schoolchildren by ensuring a full range of milk options at every school meal.

“Today’s announcement marks a significant step forward in delivering whole and 2% milk back into schools,” NMPF President & CEO Gregg Doud said. “Offering whole and 2% milk in schools helps students meet recommended daily values for many essential nutrients. It’s logistically challenging for schools to offer this milk for lunches but not for other meals, which weakens the benefits that whole and 2% milk provide. Today’s rule provides much needed clarification so that schools can offer the same milk options during breakfast and lunch.”

The Whole Milk for Healthy Kids Act gives schools the option of serving whole and 2% milk varieties — in addition to the 1%, fat-free, and flavored options already offered — in federally funded programs for the first time since federal rules in 2012 cut them.

“When the Whole Milk for Healthy Kids Act passed, NMPF pledged our fullest support to federal officials and school districts across the nation to help implement this important legislation,” Doud said. “We appreciate USDA’s swift, comprehensive efforts on implementation to ensure that schools have the information they need to make purchasing decisions and whole and reduced fat milk offerings return to school menus.”

The Final Rule takes effect in a month and is now open for public comment.

NMPF Hails USTR Report Highlighting Cheese Name Trade Barriers

NMPF welcomed the U.S. Trade Representative’s April 30 release of its 2026 Special 301 Report, which cites as a priority trade barrier the European Union’s abuse of intellectual property tools to monopolize common cheese names like “parmesan.”

The support for positions taken by NMPF, the U.S. Dairy Export Council and the Consortium for Common Food Names, is essential as the organizations work with the U.S. government to secure protections for American dairy producers’ right to use common food names in global markets.

The annual document that details pressing intellectual property issues facing U.S. exporters this year highlights the administration’s successful efforts over the past year to use reciprocal trade agreement negotiations to secure commitments to keep common names free to use for American producers. These new deals are critical for pushing back against the European Union’s protectionist geographical indication (GI) policies, which restrict widely recognized terms like “parmesan” and “feta” to specific European producers and effectively cut U.S. exporters out of key markets.

NMPF and USDEC filed comments in January supporting CCFN’s more detailed submission to USTR, which documented the breadth of markets where those rights are under threat and expressed gratitude for the administration’s prioritization of the issue. NMPF’s Shawna Morris also testified at the public hearing USTR held as part of its efforts to develop the report. All three organizations will complement USTR and U.S. government monitoring the reciprocal trade agreements and hold trading partners to their successful implementation.

Additionally, NMPF will continue to push for protections in every ongoing trade negotiation, including the U.S.-Mexico-Canada Agreement Joint Review, to ensure that U.S. dairy exporters can ship their products to any market in the world, regardless of their common names.

NMPF Spotlights Stewardship Through Storytelling

NMPF and the National Dairy FARM (Farmers Assuring Responsible Management) Program spent April telling one connected story across multiple media channels: how America’s dairy farm families are true stewards, not just for Earth Day, but every day.

NMPF’s latest Farmer Focus, CEO’s Corner column, and Dairy Defined Podcast episode spotlighted the people and programs behind the progress.

In Farmer Focus, the Van Hofwegen family shared how data opens doors for future generations, using FARM Environmental Stewardship to track and measure the farm’s environmental footprint.

Paloma Dairy in Gila Bend, AZ, is a family-owned and operated United Dairymen of Arizona member-farm producing high-quality milk since its founding in 2006. It’s managed by Robert Sr. and his four sons: Allan, Robert Jr., Arie and Kyle.

The farm uses energy audits and data collected from FARM ES evaluations to shape capital investments and business strategies. “You know, we call ourselves dairymen, but it’s agribusiness — business in capital letters,” said Robert Van Hofwegen.

NMPF President & CEO Gregg Doud’s monthly CEO’s Corner column touched on farmer stewardship, noting that much of what’s called “sustainability” is simply good business practices and efficiency.

“Public discussion about agriculture at times treats stewardship and profitability as parallel conversations — one is about social responsibility (whatever that may mean), while the other is about returns,” the column states.

“A dairy farmer’s reality is very different. On dairies, stewardship is a business strategy that improves efficiency, manages risk, and strengthens U.S. dairy’s competitiveness at home and abroad. Its success hinges upon being farmer‑led, incentive‑based, and grounded in economics rather than mandates.

“Efficiency has always been the foundation. To use a recent buzzword, do you know what “regenerative ag” is to me? It’s the stuff my dad has emphasized on the farm for the past 50 years, and its stuff dairy farmers do every day.”

Nicole Ayache, chief sustainability officer for NMPF, explained in April’s Dairy Defined podcast how the FARM Program puts farmers first. FARM provides a tool for farmers to track and measure their footprint, which they can use to make on-farm improvements. It also helps farmers access additional resources, such as grants, incentive programs, milk premiums and other revenue channels, and helps manage customer expectations while promoting the good story that happens on dairy farms daily.

Ayache, who leads the National Dairy FARM Program’s Environmental Stewardship initiative, noted how sound management of resources and a focus on efficiency has boosted dairy productivity and bottom lines, even as it reflects the dedication of the farmers themselves to serving consumers.

“A lot of stewardship is about efficiency” — but it’s also more than that, Ayache said. “Anyone who chats with farmers know that because you can hear every time you talk to them about their farm and their choices, you can hear their passion for the animals and the land and their care and the nutrition they provide to our country and the world.”

FARM Builds Trust, Sets Stage for Progress

The National Dairy FARM Program advanced U.S. dairy priorities in animal care, workforce development and environmental stewardship by presenting in two sessions at the 2026 Dairy Sustainability Alliance Spring Meeting on April 29. The program also aided in a panel discussion on how FARM delivers value across the supply chain.

Dr. Meggan Hain presented in “Landscape Level Set: Care for Animals and Communities,” exploring how the dairy industry is driving progress in animal care, food safety and workforce development. The session highlighted key focus areas for the industry in 2026 and shared resources for organizations interested in improving these focus areas.

FARM hosted a second session, “Building Trust Across the Dairy Value Chain,” as it explored perspectives that showcase how FARM delivers value by supporting market access, managing reputational risk and strengthening trust in U.S. dairy customers and consumers. Panel participants included Agri-Mark dairy farmer Val Lavigne; Kristy Miron, who serves as a sustainability & animal care manager for Land O’Lakes Inc.; and Adam Wylie, director of global responsibility for Leprino Foods.

FARM’s Nicole Ayache spoke in an informational panel about evolving global expectations and what they could mean for U.S. dairy: “What Global Reporting Expectations Mean for U.S. Dairy.” The panel shared insights into the most recent developments in E.U. sustainability directives that influence how global customers approach such topics.

The meetings also provided an opportunity to speak with farmers and industry stakeholders on current challenges, emerging animal health trends and advancements in science and technology.